Assembly debates controversial pension-borrowing bill (updated)

The Assembly is debating legislation that would allow school districts to use bonds to spread out the cost of pension contributions over a period of up to 15 years. A few speakers have pointed out that the Assembly will be voting on legislation today to implement a 2 percent property-tax cap, and the bill would allow school districts to get around it.

Assemblyman Marcus Molinaro, R-Tivoli, Dutchess County, said he strongly opposes the measure, which passed the Senate yesterday. ”The truth of the matter is it seems to me that this is bad public policy,” he said.

He said the bill would allow school districts to “circumvent public consideration and indebt their taxpayers for 15 years to pay for an operating costs.” He said it would force school districts to borrow money when they shouldn’t be borrowing it, he said.

“Instead of focusing on real mandate relief, we’re merely enabling school districts to indebt their taxpayers, ultimately weakening their own financial stability in order to pay for an operating cost that we continue to avoid. A cost that rises year after year after year because we won’t confront the problem,” he said.

Assemblyman David Gantt, D-Rochester, said he opposes the bill.

“This particular bill just is another way for those who sit on the school board to get around the mayor and the city council,” he said.

He called the bill a “sham. We ought not have this bill on the floor.”

The legislation’s sponsors, Sen. Martin Golden, R-Brooklyn, and Assemblyman Peter Abbate, D-Brooklyn, said employer contributions to the New York State Teachers’ Retirement System will cause contributions to spike over the next several years. The bill would help offset cuts in school aid that are affecting school districts.

UPDATED: After an extensive debate, the Assembly voted 85-49 (unofficial tally) to approve it. It now goes to Gov. Andrew Cuomo for consideration.